A study of comparative advantage of indian agricultural exports

Abstract

Recent developments in the international trade scenario and corresponding alterations in India’s foreign trade policies have depicted far reaching implications for India’s agricultural sector in general and agricultural exports in particular. The present study has ascertained the changes in comparative advantage status of India’s major agricultural exports during the postreforms period (1994-95 to 2008-09). India had enjoyed a comparative advantage in tea exports but had depicted a declining trend over the years. A similar pattern had been observed in coffee exports also, where India had been found losing its comparative advantage to other world coffee exporters. An unstable pattern of comparative advantage had been observed in the case of rice exports with intermittent ups and downs in the status. A gradual decline in India’s comparative advantage had been depicted for exports of sugar and cashew also.As opposed to other commodities, India had strengthened its position in the global markets in exports of Ground nut. But as far as the exports of fresh fruits and fresh vegetables are concerned, India cannot boast to have a comparative advantage. India has been found losing out its comparative advantage in export of some of the agricultural commodities to world during the period after economic reforms.